Fed regressive taxes

WASHINGTON — The Federal Reserve’s economic stimulus campaign continued to generate large profits in 2017, helping to reduce the federal deficit, but the windfall is showing signs of tapering.

The Fed, which remits its profits to the Treasury Department, disclosed on Wednesday that its payments last year totaled $80.2 billion — about 12 percent less than the $91.5 billion in 2016.

The decline in profits reflects the Fed’s efforts, as the economy gains strength, to conclude the economic stimulus campaign it waged in the wake of the 2008 financial crisis.

They peaked at 115 billion after the crash of 2008.

The Fed made an average annual contribution to the Treasury Department of $23 billion during the five years preceding the crisis.

So we are growing this tax exponentially and expect it to hit above 200 billion this cycle.  This is not sustainable in 2021.  We will have banking crisis, and all the badly educated pundits will have a Wile E Coyote moment. Macro economists will claim that the taxes on the middle class are not regressive enough.